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Wipro Q1 Results: Profit Declines 21% YoY to Rs 2,563 Crore as Expenses Rise

By: Aparna Deb

News18.com

Last Updated: July 20, 2022, 16:26 IST

New Delhi, India

Wipro

Wipro

IT major Wipro on Wednesday reported its June quarter profit at Rs 2,563 crore. Wipro's revenue for the quarter rose 17.9 per cent YoY to Rs 21,528.6 crore

Wipro Q1 Results: IT major Wipro on Wednesday reported its June quarter profit at Rs 2,563 crore, a dip of 20.9 per cent year-on-year. Wipro’s revenue for the quarter rose 17.9 per cent YoY to Rs 21,528.6 crore. Its operating margin in IT services segment decreased by 200 bps QoQ to 15 per cent.

The consolidated total revenue for the Bengaluru-based IT company rose 15.51 per cent on year to Rs 22,001 crore as compared to the revenue of Rs 19,045 crore registered in the year-ago quarter. On a sequential basis, the revenue is higher by 2.98 per cent.

In dollar terms, its revenue stood at $2.7 billion. IT Services segment revenue was at $2.735.5 million, an increase of 13.3 per cent YoY. IT Services operating margin for the quarter was at 15 per cent, a decrease of 200 basis points quarter-on-quarter. Commenting on the same, Jatin Dalal, chief financial officer at Wipro, said: “At 15 per cent of operating margins, we believe that we have bottomed out.”

In Q2, the company expects QoQ revenue growth of 3 to 5 per cent. “We expect the revenue from our IT Services business to be in the range of $2,817 million to $2,872 million,” it said in an investor presentation.

Wipro said all strategic market units and global business lines grew in double digits YoY CC in Q1. Its order book in TCV terms grew 32 per cent and in ACV terms grew 18 per cent YoY.

Wipro said its attrition rate was at 23.3 per cent during the quarter, marginally lower than 23.8 per cent in the previous quarter and significantly higher than 15.5 per cent in the same quarter last year. During the quarter under review, the net headcount addition was at 15,446 including more than 10,000 freshers.

Thierry Delaporte, CEO and managing director said, “We have made significant investments in Wipro’s growth engine and are very pleased with the outcomes. Our order bookings grew 32 per cent YoY in Total Contract Value terms, powered by large transformational deals, and our pipeline today is at an all-time high.

“We continue to reinforce the investments that allow us to grow our business, remain agile in the market and efficient as an organization, while staying focused on serving our clients even better,” Delaporte said.

In terms of sector mix, Wipro earns 35.4 per cent of its revenue from banking, financial services and insurance, followed by 18.5 per cent in consumer and 11.5 per cent in health. It earned 62 per cent of its revenue in USD.

On the bourses, shares of Wipro have tumbled over 43 per cent so far in calendar year 2022. In comparison, Nifty50 and the S&P BSE Sensex have tanked 8 per cent each. Shares of Wipro closed 1.49 per cent higher at Rs 411.70 on the NSE today.

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first published:July 20, 2022, 16:00 IST
last updated:July 20, 2022, 16:26 IST